New strategic of International marketing - MyAssignmenthelp.com

Question: Discuss about the New strategic of International marketing. Answer: Introduction Computer technology is one of the most potential and growing industries in the world. This is due to the reason that, development in technology is most prominent and rapid in the computing sector. With the development in the technology, more alternatives are coming out from the basic computing activities. One of the key alternatives being emerged is the gaming portals and consoles and associated hardware (KosMyna Tarpin-Bernard, 2013). According to various report, it is being projected that computer gaming market is having huge potential in the market. Thus, the increase in the market of computer gaming is also enhancing the potentiality of the gaming hardware in the market. According to (Boxer, 2017), it is being expected that the gaming hardware market will touch the $30 billion market by 2018. Moreover, it is also been projected that with the slump in the sales of the personal computers, gaming hardware is being projected as one of the potential market. Razer started their operation in 1998 to manufacture high end gaming mouse and are based in Singapore. Their vision is to achieve the status of market leader in the global gaming hardware market (About Razer, 2017). In the following years they have came up with various game oriented products such as gaming portals, keyboards, accessories and gaming gears. Currently they have their dual headquarters in Singapore and San Francisco. They have also introduced their own software platform known as Razer Synapse. They have already over 35 million of active users in their portals. Thus, they can be considered as one of the leading and prominent gaming companies in the world. This report will discuss about the external environment of the organization in the regions in the United States they have targeted. Moreover, organizational strengths and weaknesses are also being indentified in order to design their marketing strategy accordingly. All the elements of the marketing activities will be discussed and evaluated along with initiation of the effective market entry strategies in the targeted regions. Analysis of the external environment in United States Political The political environment of Razer in United States will be challenging due to the reason that different regions or states will have different set of political scenario. Overall political scenario is favorable due to strong political setup in the country. However, they face the threat of terrorism and thus it will be a challenge for the business organizations. More will be the associated risks, the more will be the risk elements for them due to the reason that, change in the political scenario will change the regulations in the country (Aisen Veiga, 2013). Economical Economical environment for Razer is favorable due to the increase in the trend of per capita income of the customers in the market of United States. Developed regions in the United States, are having more market opportunities due to the customer awareness about the computer games and enhanced affordability (Trepte, Reinecke Juechems, 2012). However, rate of unemployment in the United States is increasing, which will have negative implications on the business. Moreover, due to the reason that, gaming hardware is luxury items, the preference for these types of products will be lower for the customers. As discussed earlier, the market of gaming hardware is rapidly increasing and thus, the economical environment for Razer is favorable. Social The gaming community in the market of the United States is rapidly increasing, which denotes the favorable social scenario for Razer. However, the average population in the United States is aging, which will reduce the market for Razer. Thus, Razer will face social challenges in targeting these populations. Moreover, there are various instances of ill impacts of gaming are being flourished in the recent times. Thus, it is having de-motivating impact on the social scenario in the market (Wouters et al., 2013). Technological Technology is the key element for the gaming hardware organization such as Razer. They are known for the use of cutting edge technologies in their products, which helps them to stay ahead in the competition. However, the rapid change in the technology in this sector will pose challenge for them to adhere with. The targeted regions of Razer are ranging from developed market to developing market. Thus, the use of technologies will be different in different regions. Developing markets will have less affordability for the updated technologies and developed market will require frequent up gradation of existing technologies. Thus, it will be a challenge for Razer to meet the diversified requirements. Environmental Gaming sector is not having any direct implications on the environment. However, the resource required for purpose of gaming may have negative implications on the environment. In the recent time, generation of the e-waste is one of the key sources of pollution. Thus, organizations such as Razer should concentrate on reducing the impact of wastage of their products (Grant et al., 2013). Moreover, use of recycled materials in the packaging of the products will also be beneficial. Legal With the increase in the obesity among the young generation, increase in the trend of gaming is being identified as one of the key reasons. Accordingly, government is trying to initiate various legislations in order to curb trend of computer gaming. Initiation of the stringent legislations will have negative impact on the business performance of Razer. Analysis of the internal environment Strengths Initiation of latest and cutting edge software in the market. Positive reputation and goodwill and having loyal customer base. Having diversified product portfolio to meet different customer requirement. Weaknesses Having less brand value compared to other established player in the market. Having no brand identity outside the gaming community (Hsiao Chiou, 2012). Premium price of the products and catering only the niche market. Lack of economies of scale. Opportunities They can enter the market of other electronic appliances, which will enhance their market share and presence. Positive trend in gaming hardware market. Retailing the products through famous retail chains. Huge number of active users globally. Threats Various companies having more brand value are rapidly introducing technologically advanced products. Customers awareness about the ill impact of the computer gaming is increasing (Ferguson Olson, 2014). Rapid change in the taste and preference pattern of the customers. Analysis of the marketing strategies Objectives of the marketing strategy To identify the ideal market entry strategies. To identify the target market and position the products. To effectively cater to the target market. To design the marketing mix effectively. To identify the competitive advantages in the market. Market segmentation strategies STP model In order to identify the target market along with segmentation and positioning strategies, STP model will be used. According to this model, the first aspect is the segmentation of the market. This process refers to the division of the market in terms of the demography and geography segmentation (Wedel Kamakura, 2012). In terms of the demographic segmentation, the targeted age group will be 18 to 30. This age group will be targeted due to the reason that, it will cover the teenage group who are more enthusiastic about the computer gaming. Moreover, above the targeted age group, there will be more professionals who may not have the time and interest for the computer gaming. Both the male and female will be targeted due to the reason that, in the recent times, computer gaming is becoming popular among the female teenagers. As seen in the above picture, 42 percent of the gamers are female. Thus, there is huge market potentiality of computer gaming in the female population. In terms of the geographic segmentation, different regions in the United States will be targeted. Thus, the entire market of the United States will be targeted. However, the entry and operation strategies will be different in different regions. Market targeting strategies The next step of STP model is targeting. In this step, Razer will initiate various activities in order to target the segmented customers. Porter generic strategy will be helpful in initiating various targeting activities. Porter generic strategies. The first targeting activities will be the cost leadership. Razer will not initiate the cost leadership due to their premium offerings. However, they will concentrate on enhancing their economies of scale in order to reduce the cost of production. This will increase their profitability in the market (Kapferer, 2012). The next targeting strategy will be the differentiation. This strategy will be initiated by the Razer in order to create a distinctive image in the market. The products offered by them will be unique in terms of aesthetics, features and utility. Moreover, with the launch of their gaming oriented mobile phones, they have effectively implemented the differentiation approach (Valipour, Birjandi Honarbakhsh, 2012). This is due to the reason that, the mobile being launched by them is one of a kind product, which is more concentrated towards hardcore gaming usage. Thus, they are having an untapped market in the global scenario. The last step is the focus strategy. Razer will focus to the niche market due to their premium products. Moreover, gaming consoles and accessories are being targeted for the high end customers. Niche marketing will help them to enhance their brand value in the market. This is due to the reason that, major competitors of Razer including Xbox and Playstation are operating in the higher end market. Thus, in order to compete with them, Razer have to cater to the higher end market. As discussed earlier, products of Razer will be positioned as premium products in the market. According to the above positioning map, there is clear difference between the expensive and cheap gaming consoles with their utilities (Maarit Jalkhala Keranen, 2014). Accordingly, Razer is being positioned as premium offering for the hardcore gamers. This is due to the reason that, majority in the gaming community is hardcore gamers and thus it will be effective to target them. Moreover, hardcore usability will help them to cater to the professional gamers also. This will enhance the goodwill and positive word of mouth in the market. Razer will not be marketed as mass market models due to the reason that, there are already various cheaper products being available in the market by the Chinese vendors. Thus, competition will be more in the mass market along with less profitability. Moreover, positioning of the Razers products as mass market and affordable products will reduce the quality, wh ich refrain the professional and hardcore gaming community to have their products. Analysis of marketing mix Product The product portfolio of Razer consists of diversified ranges including consoles, systems, laptops, mouse, gaming gear and software. Thus, they are having different products to meet the diverse requirement of the customers. Moreover, with the introduction of the Razer mobile in the market, they have enhanced their market potentiality by providing unique product in the market. In addition, initiation of the mobile will also help them to cater to the larger section of the target audience. This is due to the reason that, gaming consoles and accessories are restricted to the hardcore gamers only. However, gaming oriented mobile will attract more mainstream audience. Thus, the market presence and potentiality will get increased. Having diversified and all associated products of gaming, they are offering one stop access to the customers to have a holistic gaming experience (Fernhaber Patel, 2012). This is also enhancing the competitive advantages in the market for them. Price As discussed earlier, pricing of the Razer will be more premium in order to target the niche market. In the low cost and affordable gaming market, various Japanese and Chinese companies are having leadership status due to their lower pricing. Thus, Razer cannot achieve the desired cost effectiveness in catering to this market. Moreover, in the gaming community, hardcore users will always go for consoles with higher specifications. Thus, in order to target the niche market, premium pricing will be helpful (Keller, 2017). Premium pricing will help to create exclusivity in the market. It will help them to distinguish them from other mass market models. However, due to the premium pricing, they may have to face challenges in marketing their products in the developing regions in the United Nations due to lower per capita income of the customers. This will reduce their market potentiality in these regions. According to the above graph, it shows that market growth rate for gaming hardware is rapidly increasing in the recent years. Thus, this data denotes that the gaming community is growing in the global scenario, which includes the developing countries also. Though, due to the premium pricing, they may face difficulties in attracting customers in the initial stage, but with the growth being forecasted, Razer will have potential customers in developing countries also. Place Currently, products of Razer are only been available on offline stores and in the official online stores of them. Thus, having the Omni channel presence is helping them to reach out to the customers from every medium available (Beck Rygl, 2015). However, in order to target the specified regions, they have to make their products available in the third party online marketplace also. In addition, they also sell their products from established retail chains in order to reach out to more number of customers. Promotion Razer is having distinctive promotional designs in order to reach out to the potential customers. They do not follow extensive promotional activities involving electronic and print media. However, they act as sponsor to various gaming events, maintaining gaming community and providing coupon codes to the customers. However, in targeting the developing countries, one of the effective promotional activities will be the social media marketing (Erdogmus Cicek, 2012). This will help them to create the brand impression among the potential customers. Moreover, initiation of the gaming events will also help to aware the customers about their products. Market entry strategies In entering in new countries, Razer should follow the direct exporting strategy. This is due to the reason that, direct exporting will help them to not have any manufacturing facilities in every country (Laufs Schwens, 2014). Though, it will increase the price of the products, but due to the fact that they are being targeted for the niche customers, thus it will not be an issue. Direct exporting will also help Razer to have same products with same standard of technologies in every market. It will also reduce the risk involved in investing in new country. Control strategy Key performance indicators will be identified and used in order to control and evaluate the business strategies (Parmenter, 2015). Razer will have three KPIs in entering in new country. These are marketing and sales, supply chain management and IT operations. Key performance indicators of Razer KPL of market and sales will help to evaluate the rate of new customer acquisition and impact of brand value. IT operations will include the after sales service of the products along with management of the technologies. Supply chain management will look after the effective inbound and outbound activities of the products in different target markets. Conclusion Thus, from the above discussion, it can be concluded that, Razer is having a diverse product portfolio, which is helping them to meet the different customer requirements. Moreover, they have gained goodwill and reputation in their existing market. However, in entering in new regions, they will need effective marketing strategies, which are being discussed n this report. Effective targeting, segmentation, and positioning strategies are being discussed in this report in order to enable them to have desired market performance. Market entry and control strategies are also been discussed in this report to help them in effectively entering in new country. Reference About Razer. (2017).Razerzone.com. Retrieved 25 November 2017, from https://www.razerzone.com/about-razer Aisen, A., Veiga, F. J. (2013). How does political instability affect economic growth?. European Journal of Political Economy, 29, 151-167. Beck, N., Rygl, D. (2015). 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